A survey carried out by Sinapro-RS identified that 69% of agencies have already suffered financial impacts
The National System of Advertising Agencies of Rio Grande do Sul (Sinapro-RS) carried out an emergency edition of the Business Environment Vision (VanPro) survey in Rio Grande do Sul. With the aim of evaluating the extent of the impacts on the creative industry in Rio Grande do Sul caused by the climate tragedy in the state, the survey confirmed a warning scenario for the sector.
The research was carried out by Sinapro-RS, following the VanPro methodology carried out throughout the country by the Sinapro/Fenapro Ecosystem, and interviewed 26 agencies operating in Rio Grande do Sul. “The data collected shows that the impact of this catastrophe was widespread in creative industry in Rio Grande do Sul, with a small fraction of companies in the sector not yet having their businesses impacted. The revenue losses attract a lot of attention, with part of this loss being immediate and many signaling that they will see a reduction within the next six months”, says Juliano Brenner Hennemann, president of Sinapro-RS.
The survey shows that, in relation to personal impacts, 42% of Rio Grande do Sul agencies had some part of the team on leave for physical health reasons and 31% had some part of the team on leave for mental health reasons. 54% of agencies had some part of their staff impacted by physical or mental health issues, when considering any type of leave. In relation to personal or material losses, 73% of agencies had part of their team with some type of loss (which could reach up to 40% of the team in terms of material losses).
With regard to customers, 92% of agencies indicated that at least some customer was impacted, with 35% of them having more than 40% of customers affected. 65% of agencies have already received contact from clients requesting renegotiation of contracts, in proportions that reached up to 40% of the client portfolio, with 38% having 10% or less of clients seeking renegotiation and 27% with more than 10% already seeking renegotiate contracts. 31% of the agencies interviewed reported having contract interruptions by clients, 15.5% of which had an impact of 5% to 10% of their client portfolio, and 15.5%, less than 5% of the portfolio.
Regarding financial impacts, 69% of agencies in Rio Grande do Sul indicated that they suffered direct impacts and only 31% did not suffer revenue losses. Of those affected, 21% lost up to 10% of revenue, 31% lost between 10% and 20%, and 17% lost more than 20% of revenue.
Regarding future business, the expectation of 85% of entrepreneurs in the sector is to lose revenue, with 35% estimating that they will lose up to 10%, 19% believe that they will lose between 10% and 20%, 23% of agencies expect to lose between 20 % and 30%, and 8% indicate expected future losses of 30% to 50% of their agencies’ revenue.
Sinapro-RS established some emergency measures to support agencies, such as making it more flexible to charge members’ monthly fees in the months of June, July, August and September, with only 50% of the monthly fees charged during the period.
The entity is looking for partnerships with the supply chain to assist the most affected agencies with business partnerships and discounts on the purchase of machinery, equipment and inputs.
Sinapro-RS is also organizing campaigns with the market in other states to encourage the purchase of services and products from Rio Grande do Sul and the hiring of agencies in Rio Grande do Sul. In addition to supporting local initiatives that seek to value state agencies and promote awareness among the population so that, as far as possible, they can return to a normal life so that affected people can keep their jobs and, consequently, rebuild their lives.
In addition, the entity is providing legal and labor advice with guidance for times of crisis. The Associação Riograndense de Propaganda (ARP), with the support of Sinapro-RS, published three important guides to assist and guide agencies in Rio Grande do Sul in the general and legal contextualization of this sensitive moment experienced by the state.
“We are offering all our solidarity and management support to our associates, so that they can manage this situation in a way that minimizes its impacts on companies, businesses and their employees”, concludes Hennemann.
